This has nothing to do directly with Seagal, but I do believe that dan-system is being used (perhaps together with menkyo system) in e.g. Yagyu shinkage ryu. E.g. Paul Manogue in New Jersey I believe is 3rd dan in this art.

I checked with Meik Skoss from Koryu Books who is a member of the Yagyu Shinkage Ryu and he replied that the main line of the ryu uses the traditional licensing system. They are overseen by Yagyu Nobuharu Toshimichi, the 21st headmaster of the tradition.

However, he did reply:

Quote:

At least one group in Nagoya, Shinkage-ryu iaido (started by a man who received a teaching license and concentrates on what we in the Yagyukai call Yagyu Seigo-ryu battojutsu) issues dan-i menjo. I believe it's also connected to ZenKenRen; people in the organization also get grades from KenRen. I do not know if the Shinkage-ryu iaido people issue traditional licenses or not. There are other lines of Shinkage-ryu hyoho; to the best of my knowledge, they issue the traditional licenses.

So it sounds like the group that uses the Dan rankings are an off shoot and not the main line YSR folks.